Does CSR Disclosure Solve Social Conflicts Between Companies and Community? An Empirical Evidence

This study aimed to investigate whether CSR programs can be used by companies to solve social conflicts between companies and communities. We conducted empirical tests using data gathered from the society living in the areas closed to mining companies (Cilegon and Cilacap, Indonesia) and company managers-who responded to our survey. The findings showed that CSR disclosures have not been able to solve social conflicts between companies and the society. This study indicated that there are differences in the views of companies and communities on the importance of CSR programs. Indeed, CSR programs which are seen as important by the community are not considered as essential by the companies. This implies that the community is not seen by the companies as an important and powerful stakeholder. Consequently, social conflicts will continue to occur as long as the companies do not pay attention to the public interests.

Key words: Social Conflict / Social Responsibility / Community / Company

This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Current usage metrics show cumulative count of Article Views (full-text article views including HTML views, PDF and ePub downloads, according to the available data) and Abstracts Views on Vision4Press platform.

Data correspond to usage on the plateform after 2015. The current usage metrics is available 48-96 hours after online publication and is updated daily on week days.